Aggregate Demand

This refers to the macroeconomic calculation of the level of expenditure in the economy in a given period, adjusted for net exports.

Aggregate Demand, also known as Total Spending,includes all consumer expenditure, all expenditure on capital goods by businesses, all expenditure by government on public service, plus the balance between all exports and imports.

Aggregate Demand is a term normally found in business economics and financial management.

Explore our learning zone to discover more